K B Toys

A civil rights group filed suit against retailer K.B. Toys, alleging that some of its stores engage in discrimination against black customers. The Washington-based Equal Rights Center, along with two African American customers, named the mall-based retailer and its parent company, Wilmington, Del.-based Consolidated Stores Corp., in the lawsuit filed in U.S. District Court in Greenbelt, Md. In its suit, the center says it uncovered a pattern of discrimination at K.B.

KB Toys Inc. won Bankruptcy Court approval for a reorganization plan that gives Prentice Capital Management a 90% stake in the company. U.S. Bankruptcy Judge Walter Shapero's approval allows KB Toys to end its bankruptcy case by the end of the year. Prentice, which is controlled by hedge fund investor Michael Zimmerman, will pay $20 million for 90% of Pittsfield, Mass.-based KB Toys' common stock and supply a $25-million loan, according to court documents.

KB Toys Inc. said it expected to emerge from bankruptcy protection before the holiday shopping season without closing more stores or cutting more jobs under an agreement that would put the chain under control of a New York investment firm. An affiliate of Prentice Capital Management would invest $20 million in the reorganized company and extend credit of as much as $25 million in exchange for 90% of the new entity's private equity common stock and all of its preferred stock.

KB Toys Inc. said it expected to emerge from bankruptcy protection before the holiday shopping season without closing more stores or cutting more jobs under an agreement that would put the chain under control of a New York investment firm. An affiliate of Prentice Capital Management would invest $20 million in the reorganized company and extend credit of as much as $25 million in exchange for 90% of the new entity's private equity common stock and all of its preferred stock.

KB Toys Inc. won Bankruptcy Court approval for a reorganization plan that gives Prentice Capital Management a 90% stake in the company. U.S. Bankruptcy Judge Walter Shapero's approval allows KB Toys to end its bankruptcy case by the end of the year. Prentice, which is controlled by hedge fund investor Michael Zimmerman, will pay $20 million for 90% of Pittsfield, Mass.-based KB Toys' common stock and supply a $25-million loan, according to court documents.

KB Toys Inc., a U.S. toy store chain, agreed to pay about $5.4 million for the inventory of bankrupt Web retailer EToys Inc. Closely held KB Toys won bidding for seven of 11 lots of inventory and will sell the items at a discount on KBkids.com and at KB Toy Outlet and KB Toy Works stores, a spokesman said. The Pittsfield, Mass.-based company is interested in other assets, including EToys' Web address, he said.

KB Toys Inc., the largest U.S. mall-based toy retailer, sold its Internet assets to investment firm D.E. Shaw for $7.4 million as it tried to emerge from bankruptcy protection. D.E. Shaw, a New York-based firm that this year bought FAO Inc.'s FAO Schwarz stores in New York and Las Vegas, also will make royalty payments of at least $500,000 a year for the next three years, the firm said. The purchase includes inventory, equipment and the EToys trademarks. D.E.

KB is headed into BK. KB Toys Inc. filed for Chapter 11 bankruptcy protection Wednesday, the latest victim of a bruising holiday-season price war that forced FAO Inc. to liquidate part of its business and cut into the sales and profits of other big-name toy sellers. Pittsfield, Mass.-based KB, best known for its ubiquitous mall-based toy stores, said its restructuring could include closing as many as 500 underperforming stores.

Close-out retailer Consolidated Stores Corp. said that it has sold its K-B Toys division to an affiliate of Boston-based investment company Bain Capital Inc. for $305 million. The separation of Consolidated's close-out and toy businesses is intended to improve the performance of each entity, the company said. KB's management will continue to lead the chain of toy stores.

Consolidated Stores Corp. said it reached an agreement to sell the K-B Toy chain to an unnamed buyer, shedding a business that the company said is less profitable than when it was acquired almost five years ago. The company also reported a decline in fiscal third-quarter profit and said fourth-quarter earnings will be below analysts' estimates because of sluggish consumer spending and price cuts during the holiday season.

KB Toys Inc., the largest U.S. mall-based toy retailer, sold its Internet assets to investment firm D.E. Shaw for $7.4 million as it tried to emerge from bankruptcy protection. D.E. Shaw, a New York-based firm that this year bought FAO Inc.'s FAO Schwarz stores in New York and Las Vegas, also will make royalty payments of at least $500,000 a year for the next three years, the firm said. The purchase includes inventory, equipment and the EToys trademarks. D.E.

KB is headed into BK. KB Toys Inc. filed for Chapter 11 bankruptcy protection Wednesday, the latest victim of a bruising holiday-season price war that forced FAO Inc. to liquidate part of its business and cut into the sales and profits of other big-name toy sellers. Pittsfield, Mass.-based KB, best known for its ubiquitous mall-based toy stores, said its restructuring could include closing as many as 500 underperforming stores.

KB Toys Inc., a U.S. toy store chain, agreed to pay about $5.4 million for the inventory of bankrupt Web retailer EToys Inc. Closely held KB Toys won bidding for seven of 11 lots of inventory and will sell the items at a discount on KBkids.com and at KB Toy Outlet and KB Toy Works stores, a spokesman said. The Pittsfield, Mass.-based company is interested in other assets, including EToys' Web address, he said.

Close-out retailer Consolidated Stores Corp. said that it has sold its K-B Toys division to an affiliate of Boston-based investment company Bain Capital Inc. for $305 million. The separation of Consolidated's close-out and toy businesses is intended to improve the performance of each entity, the company said. KB's management will continue to lead the chain of toy stores.

Consolidated Stores Corp. said it reached an agreement to sell the K-B Toy chain to an unnamed buyer, shedding a business that the company said is less profitable than when it was acquired almost five years ago. The company also reported a decline in fiscal third-quarter profit and said fourth-quarter earnings will be below analysts' estimates because of sluggish consumer spending and price cuts during the holiday season.

A civil rights group filed suit against retailer K.B. Toys, alleging that some of its stores engage in discrimination against black customers. The Washington-based Equal Rights Center, along with two African American customers, named the mall-based retailer and its parent company, Wilmington, Del.-based Consolidated Stores Corp., in the lawsuit filed in U.S. District Court in Greenbelt, Md. In its suit, the center says it uncovered a pattern of discrimination at K.B.

For the past two years, 11-year-old Michael Pociask has been snubbing toy stores in favor of much cooler alternatives: electronics chains like Best Buy, packed with high-tech gadgets and video games. "When I think of toy stores, I think of toy trains, little buses and stuffed animals," the Herndon, Va., boy said. Michael isn't the only one who thinks that toy stores are too childish.

Consumers expecting to pay the $299 suggested retail price for Microsoft Corp.'s Xbox video game console may be in for some sticker shock. Beginning next month, many retailers will be requiring customers to pay from $499 to as much as $1,200 to reserve an Xbox console that, like it or not, will come bundled with games, peripherals and warranties. The reason: Microsoft will provide additional marketing money to merchants that agree to include the software giant's games in their bundles.